By:  Carriker                                          S.B. No. 622
       73R869 CAG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the continuation of the Texas Alcoholic Beverage
    1-3  Commission and to the regulation of alcoholic beverages and bingo;
    1-4  providing penalties.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 1.04, Alcoholic Beverage Code, is amended
    1-7  by amending Subdivisions (3) and (7) and adding Subdivision (24) to
    1-8  read as follows:
    1-9              (3)  "Distilled spirits" means alcohol, spirits of
   1-10  wine, whiskey, rum, brandy, gin, or any liquor produced in whole or
   1-11  in part by the process of distillation, including all dilutions or
   1-12  mixtures of them, and includes spirit coolers that may have an
   1-13  alcoholic content as low as four percent alcohol by volume and that
   1-14  contain plain, sparkling, or carbonated water and may also contain
   1-15  one or more natural or artificial blending or flavoring
   1-16  ingredients.
   1-17              (7)  "Wine and vinous liquor" means the product
   1-18  obtained from the alcoholic fermentation of juice of sound ripe
   1-19  grapes, fruits, berries, or honey, and includes wine coolers.
   1-20              (24)  "Wine cooler" means an alcoholic beverage
   1-21  consisting of vinous liquor plus plain, sparkling, or carbonated
   1-22  water and which may also contain one or more natural or artificial
   1-23  blending or flavoring ingredients.  A wine cooler may have an
   1-24  alcohol content as low as one-half of one percent by volume.
    2-1        SECTION 2.  Chapter 1, Alcoholic Beverage Code, is amended by
    2-2  adding Section 1.08 to read as follows:
    2-3        Sec. 1.08.  CRIMINAL NEGLIGENCE STANDARD FOR ADMINISTRATIVE
    2-4  ACTION.  For the purposes of administrative actions under this
    2-5  code, a person acts with criminal negligence if the person acts
    2-6  with a mental state that would constitute criminal negligence under
    2-7  Chapter 6, Penal Code, if the act were an offense.
    2-8        SECTION 3.  Section 5.01, Alcoholic Beverage Code, is amended
    2-9  by amending Subsection (b) and adding Subsection (c) to read as
   2-10  follows:
   2-11        (b)  The Texas Alcoholic Beverage Commission is subject to
   2-12  Chapter 325, Government Code (Texas Sunset Act).  Unless continued
   2-13  in existence as provided by that chapter, the commission is
   2-14  abolished and Subchapter A, Chapter 5, of this code expires
   2-15  September 1, 2005 <1993>.
   2-16        (c)  The Texas Alcoholic Beverage Commission is subject to
   2-17  the requirements of Article 13, State Purchasing and General
   2-18  Services Act (Article 601b, Vernon's Texas Civil Statutes).
   2-19        SECTION 4.  Section 5.05, Alcoholic Beverage Code, is amended
   2-20  by amending Subsection (c) and by adding Subsections (d), (e), and
   2-21  (f) to read as follows:
   2-22        (c)  A person may not serve as a member of the commission or
   2-23  act as the general counsel to the commission if the person <who> is
   2-24  required to register as a lobbyist under Chapter 305, Government
   2-25  Code, because <by virtue> of the person's activities for
   2-26  compensation <in or> on behalf of a profession related to the
   2-27  operation of the commission <may not serve as a member of the
    3-1  commission or act as the general counsel to the commission>.
    3-2        (d)  An officer, employee, or paid consultant of a Texas
    3-3  trade association in the field of alcoholic beverage manufacture,
    3-4  distribution, service, or sales may not be a member or employee of
    3-5  the commission.
    3-6        (e)  A person who is the spouse of an officer, manager, or
    3-7  paid consultant of a Texas trade association in the field of
    3-8  alcoholic beverage manufacture, distribution, or sales may not be a
    3-9  member or employee of the commission.
   3-10        (f)  For the purposes of this section, a Texas trade
   3-11  association is a nonprofit, cooperative, and voluntarily joined
   3-12  association of business or professional competitors in this state
   3-13  designed to assist its members and its industry or profession in
   3-14  dealing with mutual business or professional problems and in
   3-15  promoting their common interest.
   3-16        SECTION 5.  Sections 5.10(b), (c), and (d), Alcoholic
   3-17  Beverage Code, are amended to read as follows:
   3-18        (b)  The <commission or> administrator or the administrator's
   3-19  designee shall <determine the duties of all employees and shall>
   3-20  develop an intra-agency career ladder program.  The program<, one
   3-21  part of which> shall require the intra-agency posting of all
   3-22  nonentry level positions concurrently with any public posting.  The
   3-23  <commission or> administrator<,> or the administrator's designee
   3-24  <of either,> shall develop a system of annual performance
   3-25  evaluations <based on measurable job tasks>.  All merit pay for
   3-26  commission employees must be based on the system established under
   3-27  this subsection.  The employees shall be compensated as provided by
    4-1  legislative appropriation.  The commission or administrator shall
    4-2  determine the duties of all employees of the commission.
    4-3        (c)  The <commission or> administrator<,> or the
    4-4  administrator's designee <of either,> shall prepare and maintain a
    4-5  written policy statement to assure implementation of a program of
    4-6  equal employment opportunity under which <whereby> all personnel
    4-7  transactions are made without regard to race, color, disability
    4-8  <handicap>, sex, religion, age, or national origin.  The policy
    4-9  statement must include:
   4-10              (1)  personnel policies, including policies relating to
   4-11  recruitment, evaluation, selection, appointment, training, and
   4-12  promotion of personnel that are in compliance with the Commission
   4-13  on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes);
   4-14              (2)  a comprehensive <complete> analysis of the
   4-15  commission <agency's> work force that meets federal and state
   4-16  guidelines;
   4-17              (3)  procedures by which a determination can be made of
   4-18  significant underuse <underutilization,> in the commission <agency>
   4-19  work force<,> of all persons for whom <of which> federal or state
   4-20  guidelines encourage a more equitable balance; and
   4-21              (4)  reasonable methods to appropriately address those
   4-22  areas of significant underuse <underutilization, in the agency work
   4-23  force, of all persons of which federal or state guidelines
   4-24  encourage a more equitable balance>.
   4-25        (d)  A <The> policy statement prepared under Subsection (c)
   4-26  of this section must <shall be filed with the governor's office
   4-27  within 60 days of the effective date of the amendment of this
    5-1  section by the 69th Legislature, Regular Session, 1985,> cover an
    5-2  annual period, <and> be updated <at least> annually and reviewed by
    5-3  the Commission on Human Rights for compliance with Subsection
    5-4  (c)(1) of this section, and be filed with the governor's office.
    5-5        (e)  The governor's office shall deliver <develop and make> a
    5-6  biennial report to the legislature based on the information
    5-7  submitted under Subsection (d) of this section.  The report may be
    5-8  made separately or as a part of other biennial reports made to the
    5-9  legislature.
   5-10        SECTION 6.  Subchapter A, Chapter 5, Alcoholic Beverage Code,
   5-11  is amended by adding Sections 5.10A, 5.10B, and 5.10C to read as
   5-12  follows:
   5-13        Sec. 5.10A.  HUMAN RESOURCES DIVISION.  (a)  A human
   5-14  resources division is established within the commission.
   5-15        (b)  The division is responsible for personnel, recruiting,
   5-16  hiring, and other human resource functions and shall provide
   5-17  recruiting and technical assistance to the divisions and regional
   5-18  offices of the commission.
   5-19        (c)  The division shall develop policies and procedures
   5-20  related to recruitment, hiring, and other human resource functions
   5-21  that are in compliance with state and federal law.
   5-22        Sec. 5.10B.  RECRUITMENT.  For the purpose of providing
   5-23  adequate personnel for all job positions in the commission, the
   5-24  commission shall:
   5-25              (1)  open all positions compensated at or above the
   5-26  amount prescribed by the General Appropriations Act for step 1,
   5-27  salary group 21, of the position classification salary schedule to
    6-1  applicants both from within and outside the commission;
    6-2              (2)  develop a recruiting program that identifies
    6-3  underrepresentation with the commission and focuses on recruiting
    6-4  different ethnic, racial, or gender groups for job categories in
    6-5  which underrepresentation occurs; and
    6-6              (3)  require that all applicants be reviewed by the
    6-7  human resources division to ensure consideration of
    6-8  underrepresented ethnic, racial, or gender groups.
    6-9        Sec. 5.10C.  ANNUAL REPORT.  The administrator shall report
   6-10  not later than February 1 of each year to the commission on the
   6-11  progress of the commission in the recruitment and hiring of
   6-12  personnel in compliance with the commission's recruitment and
   6-13  hiring policies.
   6-14        SECTION 7.  Subchapter A, Chapter 5, Alcoholic Beverage Code,
   6-15  is amended by adding Section 5.19 to read as follows:
   6-16        Sec. 5.19.  CITIZEN'S ADVISORY COMMITTEE.  (a)  The
   6-17  commission shall appoint a citizen's advisory committee consisting
   6-18  of nine members.  The committee members shall be appointed to
   6-19  represent a balance of interests, including representatives of:
   6-20              (1)  public groups interested in alcohol consumption
   6-21  issues;
   6-22              (2)  local communities;
   6-23              (3)  local law enforcement agencies; and
   6-24              (4)  the alcoholic beverage industry.
   6-25        (b)  A citizen's advisory committee member serves at the
   6-26  pleasure of the commission.  A member of the committee is not
   6-27  entitled to receive compensation for serving as a member.  A member
    7-1  is entitled to reimbursement for reasonable expenses incurred in
    7-2  performing duties as a member of the committee.
    7-3        (c)  The citizen's advisory committee shall:
    7-4              (1)  advise the commission on the needs and problems of
    7-5  communities relating to the sale and consumption of alcoholic
    7-6  beverages;
    7-7              (2)  comment on rules involving alcoholic beverages
    7-8  during their development and before their final adoption unless an
    7-9  emergency requires immediate action by the commission;
   7-10              (3)  report annually to the commission on the
   7-11  committee's activities; and
   7-12              (4)  perform other duties as determined by the
   7-13  commission.
   7-14        (d)  The citizen's advisory committee shall meet quarterly or
   7-15  as requested by the commission.
   7-16        (e)  The commission may adopt rules to govern the operations
   7-17  of the citizen's advisory committee.
   7-18        SECTION 8.  Subchapter A, Chapter 5, Alcoholic Beverage Code,
   7-19  is amended by adding Section 5.21 to read as follows:
   7-20        Sec. 5.21.  STANDARDS OF CONDUCT INFORMATION.  The commission
   7-21  shall provide to its members and employees, as often as necessary,
   7-22  information regarding their qualification for office or employment
   7-23  under this code and their responsibilities under applicable laws
   7-24  relating to standards of conduct for state officers or employees.
   7-25        SECTION 9.  Section 5.34, Alcoholic Beverage Code, is amended
   7-26  to read as follows:
   7-27        Sec. 5.34.  Delegation of Authority.  (a)  The commission may
    8-1  authorize its agents, servants, and employees to carry out, under
    8-2  its direction, the provisions of this code.
    8-3        (b)  The commission shall develop and implement policies that
    8-4  clearly define the respective responsibilities of the commission
    8-5  and the staff of the commission.
    8-6        SECTION 10.  Section 5.43, Alcoholic Beverage Code, is
    8-7  amended to read as follows:
    8-8        Sec. 5.43.  Who May Hold Hearing; Rules of Evidence.  Except
    8-9  for a hearing held under Section 61.32 of this code, a hearing on
   8-10  the adoption of commission rules, or a hearing on an employment
   8-11  matter, the <The> commission designates the State Office of
   8-12  Administrative Hearings <or administrator may designate a member of
   8-13  the commission or other representative> to conduct and make a
   8-14  record of any hearing authorized by this code.  The commission or
   8-15  administrator may render a decision on the basis of the record or
   8-16  the proposal for decision if one is required under the
   8-17  Administrative Procedure and Texas Register Act (Article 6252-13a,
   8-18  Vernon's Texas Civil Statutes) as if the administrator or entire
   8-19  commission had conducted the hearing.  The commission may prescribe
   8-20  its rules of procedure for cases not heard by the State Office of
   8-21  Administrative Hearings.
   8-22        SECTION 11.  Section 5.50, Alcoholic Beverage Code, is
   8-23  amended to read as follows:
   8-24        Sec. 5.50.  Establishment of <Certain> Fees.  (a)  Except for
   8-25  a service or importing fee, the  <The> commission by rule shall set
   8-26  <may establish reasonable> fees for tasks and services performed by
   8-27  the commission or licenses or permits issued by the commission in
    9-1  carrying out the provisions of this code in amounts reasonable and
    9-2  necessary to defray the cost of administering<, including fees
    9-3  incidental to the issuance of licenses and permits under Title 3
    9-4  of> this code.
    9-5        (b)  <The commission may not increase or decrease a fee set
    9-6  by this code, but if a statute is enacted creating a certificate,
    9-7  permit, or license and there is no fee established, the commission
    9-8  by rule may set a fee.>
    9-9        <(c)>  Insofar as they relate to the levying and collection
   9-10  of a local fee, Sections 11.38 and 61.36 of this code <do not>
   9-11  apply to license or permit fees set by rule of the commission.
   9-12        (c) <(d)  A fee authorized by this section and set by rule of
   9-13  the  commission may not exceed $25.>  Revenues from fees collected
   9-14  by the commission under this section shall be deposited in the
   9-15  general revenue fund.
   9-16        SECTION 12.  Subchapter B, Chapter 5, Alcoholic Beverage
   9-17  Code, is amended by adding Section 5.52 to read as follows:
   9-18        Sec. 5.52.  PROGRAM ACCESSIBILITY PLAN.  The commission shall
   9-19  prepare and maintain a written plan that describes how a person who
   9-20  does not speak English or who has a physical, mental, or
   9-21  developmental disability may be provided reasonable access to the
   9-22  commission's programs.
   9-23        SECTION 13.  Subchapter B, Chapter 5, Alcoholic Beverage
   9-24  Code, is amended by adding Section 5.53 to read as follows:
   9-25        Sec. 5.53.  PUBLIC INTEREST INFORMATION.  (a)  The commission
   9-26  shall prepare information of public interest describing the
   9-27  functions of the commission and the commission's procedures by
   10-1  which complaints are filed with and resolved by the commission.
   10-2  The commission shall make the information available to the public
   10-3  and appropriate state agencies.
   10-4        (b)  The commission by rule shall establish methods by which
   10-5  consumers and service recipients are notified of the name, mailing
   10-6  address, and telephone number of the commission for the purpose of
   10-7  directing a complaint to the commission.  The commission may
   10-8  require that the notification be provided on a sign prominently
   10-9  displayed in the place of business of each individual or entity
  10-10  regulated under this code.
  10-11        SECTION 14.  Subchapter B, Chapter 5, Alcoholic Beverage
  10-12  Code, is amended by adding Section 5.54 to read as follows:
  10-13        Sec. 5.54.  RESOLUTION OF COMPLAINTS.  (a)  The commission
  10-14  shall keep an information file about each complaint filed with the
  10-15  commission that the commission has authority to resolve.
  10-16        (b)  If a written complaint is filed with the commission that
  10-17  the commission has authority to resolve, the commission, at least
  10-18  quarterly and until final disposition of the complaint, shall
  10-19  notify the parties to the complaint of the status of the complaint
  10-20  unless the notice would jeopardize an undercover investigation.
  10-21        SECTION 15.  Section 6.01, Alcoholic Beverage Code, is
  10-22  amended to read as follows:
  10-23        Sec. 6.01.  Rights and Privileges; Revocation; ADMINISTRATIVE
  10-24  PENALTY.  (a)  A person may manufacture, distill, brew, sell,
  10-25  import, export, transport, distribute, warehouse, store, possess,
  10-26  possess for the purpose of sale, bottle, rectify, blend, treat,
  10-27  fortify, mix, or process alcoholic beverages or possess equipment
   11-1  or material designed for or capable of use for manufacturing
   11-2  alcoholic beverages, if the right or privilege of doing so is
   11-3  granted by this code and the person has first obtained a license or
   11-4  permit of the proper type as required by this code.
   11-5        (b)  A license or permit issued under this code is a purely
   11-6  personal privilege and is subject to revocation or suspension if
   11-7  the holder is found to have violated a provision of this code or a
   11-8  rule of the commission.
   11-9        (c)  A license or permit holder found to have violated a
  11-10  provision of this code or a rule of the commission may be subject
  11-11  to an administrative penalty under Section 6.03 of this code.
  11-12        SECTION 16.  Section 6.02(b), Alcoholic Beverage Code, is
  11-13  amended to read as follows:
  11-14        (b)  The fee for an application for a change in expiration
  11-15  date is set by the commission <is $25 per license or permit
  11-16  affected>.
  11-17        SECTION 17.  Chapter 6, Alcoholic Beverage Code, is amended
  11-18  by adding Section 6.03 to read as follows:
  11-19        Sec. 6.03.  ADMINISTRATIVE PENALTIES.  (a)  The commission
  11-20  may assess an administrative penalty against a licensee or
  11-21  permittee under this code who violates a provision of this code or
  11-22  a rule or order adopted by the commission under this code as
  11-23  provided by this section.
  11-24        (b)  The penalty for each violation may be in an amount not
  11-25  to exceed $25,000.  Each day a violation continues or occurs may be
  11-26  considered a separate violation for purposes of penalty assessment.
  11-27        (c)  In determining the amount of the penalty, the commission
   12-1  or administrator, if designated by the commission, shall consider:
   12-2              (1)  the seriousness of the violation, including the
   12-3  nature, circumstances, extent, and gravity of the prohibited acts
   12-4  and the hazard or potential hazard posed to the health or safety of
   12-5  the public;
   12-6              (2)  the economic damage to property or the environment
   12-7  caused by the violation;
   12-8              (3)  the history of previous violations;
   12-9              (4)  the amount necessary to deter future violations;
  12-10              (5)  efforts to correct the violation; and
  12-11              (6)  any other matter that justice may require.
  12-12        (d)  If, after investigation of a possible violation and the
  12-13  facts surrounding that possible violation, the administrator
  12-14  determines that a violation has occurred, the administrator may
  12-15  issue a violation report stating the facts on which the conclusion
  12-16  that a violation occurred is based, recommending that an
  12-17  administrative penalty under this section be imposed on the person
  12-18  charged, and recommending the amount of that proposed penalty.  The
  12-19  administrator shall base the recommended amount of the proposed
  12-20  penalty on the seriousness of the violation determined by
  12-21  consideration of the factors set forth in Subsection (c) of this
  12-22  section.
  12-23        (e)  Not later than the 14th day after the date on which the
  12-24  report is issued, the administrator shall give written notice of
  12-25  the report to the person charged.  The notice shall include a brief
  12-26  summary of the charges, a statement of the amount of the penalty
  12-27  recommended, and a statement of the right of the person charged to
   13-1  a hearing on the occurrence of the violation or the amount of the
   13-2  penalty, or both the occurrence of the violation and the amount of
   13-3  the penalty.
   13-4        (f)  Not later than the 20th day after the date on which
   13-5  notice is received, the person charged may accept the determination
   13-6  of the administrator made under Subsection (d) of this section,
   13-7  including the recommended penalty, or make a written request for a
   13-8  hearing on the determination.
   13-9        (g)  If the person charged with the violation accepts the
  13-10  determination of the administrator, the commission shall issue an
  13-11  order approving the determination and ordering the payment of the
  13-12  recommended penalty.
  13-13        (h)  If the person charged requests a hearing or fails to
  13-14  timely respond to the notice, the administrator shall set a hearing
  13-15  and give notice of the hearing.  The hearing shall be held by a
  13-16  hearing examiner designated by the commission.  The hearing
  13-17  examiner shall make findings of fact and conclusions of law and
  13-18  promptly issue to the commission or administrator, if designated by
  13-19  the commission, a proposal for decision as to the occurrence of the
  13-20  violation, including a recommendation as to the amount of the
  13-21  proposed penalty if a penalty is warranted.  Based on the findings
  13-22  of fact, conclusions of law, and recommendations of the hearing
  13-23  examiner, the commission or administrator by order may find a
  13-24  violation has occurred and may assess a penalty or may find that no
  13-25  violation has occurred.  All proceedings under this subsection are
  13-26  subject to the Administrative Procedure and Texas Register Act
  13-27  (Article 6252-13a, Vernon's Texas Civil Statutes).
   14-1        (i)  The administrator shall give notice of the commission's
   14-2  or administrator's, if designated by the commission, order to the
   14-3  person charged.  The notice shall include:
   14-4              (1)  the findings of fact and conclusions of law
   14-5  separately stated;
   14-6              (2)  the amount of the penalty ordered, if any;
   14-7              (3)  a statement of the right of the person charged to
   14-8  judicial review of the commission's or administrator's order, if
   14-9  any; and
  14-10              (4)  other information required by law.
  14-11        (j)  Within the 30-day period immediately following the day
  14-12  on which the order becomes final as provided by Section 16(c),
  14-13  Administrative Procedure and Texas Register Act (Article 6252-13a,
  14-14  Vernon's Texas Civil Statutes), the person charged with the penalty
  14-15  shall:
  14-16              (1)  pay the penalty in full; or
  14-17              (2)  if the person files a petition for judicial review
  14-18  contesting either the amount of the penalty or the fact of the
  14-19  violation or contesting both the fact of the violation and the
  14-20  amount of the penalty:
  14-21                    (A)  forward the amount to the administrator for
  14-22  placement in an escrow account; or
  14-23                    (B)  in lieu of payment into escrow, post with
  14-24  the administrator a supersedeas bond in a form approved by the
  14-25  administrator for the amount of the penalty, the bond to be
  14-26  effective until all judicial review of the order or decision is
  14-27  final.
   15-1        (k)  If a person charged is financially unable to either
   15-2  forward the amount of the penalty for placement in an escrow
   15-3  account or post a supersedeas bond for the amount of the penalty,
   15-4  the person may satisfy the requirements of Subsection (j)(2) of
   15-5  this section by filing with the administrator an affidavit sworn by
   15-6  the person charged, stating that the person is financially unable
   15-7  to either forward the amount of the penalty or post a bond.
   15-8        (l)  Failure to forward the money to or to post the bond or
   15-9  file the affidavit with the administrator within the time provided
  15-10  by Subsection (j) of this section results in a waiver of all legal
  15-11  rights to judicial review.  Also, if the person charged fails to
  15-12  pay the penalty in full as provided under Subsection (j)(1) of this
  15-13  section or forward the money, post the bond, or file the affidavit
  15-14  as provided by Subsection (j) or (k) of this section, the
  15-15  administrator may forward the matter to the attorney general for
  15-16  enforcement.
  15-17        (m)  Judicial review of the order or decision of the
  15-18  commission assessing the penalty shall be under the substantial
  15-19  evidence rule and shall be instituted by filing a petition with a
  15-20  district court in Travis County, as provided by Section 19,
  15-21  Administrative Procedure and Texas Register Act (Article 6252-13a,
  15-22  Vernon's Texas Civil Statutes).
  15-23        (n)  If the penalty is reduced or not assessed by the court,
  15-24  the administrator shall remit to the person charged the appropriate
  15-25  amount plus accrued interest if the penalty has been paid or shall
  15-26  execute a release of the bond if a supersedeas bond has been
  15-27  posted.  The accrued interest on amounts remitted by the
   16-1  administrator under this subsection shall be paid at a rate equal
   16-2  to the rate charged on loans to depository institutions by the New
   16-3  York Federal Reserve Bank and shall be paid for the period
   16-4  beginning on the date the penalty is paid to the administrator
   16-5  under Subsection (j) of this section and ending on the date the
   16-6  penalty is remitted.
   16-7        (o)  A penalty collected under this section for a violation
   16-8  by a person licensed or permitted under this code shall be
   16-9  deposited in the state general revenue fund.
  16-10        SECTION 18.  Section 11.34(b), Alcoholic Beverage Code, is
  16-11  amended to read as follows:
  16-12        (b)  An applicant who files a consolidated application must
  16-13  pay the fee set by the commission <prescribed in this code> for
  16-14  each permit included in the application.
  16-15        SECTION 19.  Sections 11.61(b) and (c), Alcoholic Beverage
  16-16  Code, are amended to read as follows:
  16-17        (b)  The commission or administrator may suspend <for not
  16-18  more than 60 days> or cancel an original or renewal permit if it is
  16-19  found, after notice and hearing, that any of the following is true:
  16-20              (1)  the permittee has been finally convicted of a
  16-21  violation of this code;
  16-22              (2)  the permittee violated a provision of this code or
  16-23  a rule of the commission;
  16-24              (3)  the permittee was finally convicted of a felony
  16-25  while holding an original or renewal permit;
  16-26              (4)  the permittee made a false or misleading statement
  16-27  in connection with his original or renewal application, either in
   17-1  the formal application itself or in any other written instrument
   17-2  relating to the application submitted to the commission, its
   17-3  officers, or employees;
   17-4              (5)  the permittee is indebted to the state for taxes,
   17-5  fees, or payment of penalties imposed by this code or by a rule of
   17-6  the commission;
   17-7              (6)  the permittee is not of good moral character or
   17-8  his reputation for being a peaceable and law-abiding citizen in the
   17-9  community where he resides is bad;
  17-10              (7)  the place or manner in which the permittee
  17-11  conducts his business warrants the cancellation or suspension of
  17-12  the permit based on the general welfare, health, peace, morals, and
  17-13  safety of the people and on the public sense of decency;
  17-14              (8)  the permittee is not maintaining an acceptable
  17-15  bond;
  17-16              (9)  the permittee maintains a noisy, lewd, disorderly,
  17-17  or unsanitary establishment or has supplied impure or otherwise
  17-18  deleterious beverages;
  17-19              (10)  the permittee is insolvent or mentally or
  17-20  physically unable to carry on the management of his establishment;
  17-21              (11)  the permittee is in the habit of using alcoholic
  17-22  beverages to excess;
  17-23              (12)  the permittee knowingly misrepresented to a
  17-24  customer or the public any liquor sold by him;
  17-25              (13)  the permittee was intoxicated on the licensed
  17-26  premises;
  17-27              (14)  the permittee sold or delivered an alcoholic
   18-1  beverage to an intoxicated person;
   18-2              (15)  the permittee possessed on the licensed premises
   18-3  an alcoholic beverage that he was not authorized by his permit to
   18-4  purchase and sell;
   18-5              (16)  a package store or wine only package store
   18-6  permittee transported or shipped liquor, or caused it to be
   18-7  transported or shipped, into a dry state or a dry area within this
   18-8  state;
   18-9              (17)  the permittee is residentially domiciled with a
  18-10  person who has a financial interest in an establishment engaged in
  18-11  the business of selling beer at retail, other than a mixed beverage
  18-12  establishment, except as authorized by Section 22.06, 24.05, or
  18-13  102.05 of this code;
  18-14              (18)  the permittee is residentially domiciled with a
  18-15  person whose permit or license was cancelled for cause within the
  18-16  12-month period preceding his own application;
  18-17              (19)  the permittee is not a citizen of the United
  18-18  States or has not been a citizen of Texas for a period of three
  18-19  years immediately preceding the filing of his application, unless
  18-20  he was issued an original or renewal permit on or before September
  18-21  1, 1948, and has been a United States citizen at some time; or
  18-22              (20)  the permittee permitted a person to open a
  18-23  container of alcoholic beverage or possess an open container of
  18-24  alcoholic beverage on the licensed premises unless a mixed beverage
  18-25  permit has been issued for the premises.
  18-26        (c)  The commission or administrator may refuse to renew or,
  18-27  after notice and hearing, suspend <for not more than 60 days> or
   19-1  cancel a permit if the commission or administrator finds that the
   19-2  permittee:
   19-3              (1)  no longer holds a sales tax permit, if required,
   19-4  for the place of business covered by the alcoholic beverage permit;
   19-5  or
   19-6              (2)  is shown on the records of the comptroller of
   19-7  public accounts as being subject to a final determination of taxes
   19-8  due and payable under the Limited Sales, Excise and Use Tax Act
   19-9  (Chapter 151, Tax Code), or is shown on the records of the
  19-10  comptroller of public accounts as being subject to a final
  19-11  determination of taxes due and payable under Chapter 321, Tax Code.
  19-12        SECTION 20.  Section 11.611, Alcoholic Beverage Code, is
  19-13  amended to read as follows:
  19-14        Sec. 11.611.  Conviction of Offense Relating to
  19-15  Discrimination.  The commission or administrator may suspend <for
  19-16  not more than 60 days> or cancel an original or renewal permit if
  19-17  it is found, after notice and hearing that:
  19-18              (1)  the permittee has been finally convicted of any
  19-19  offense under state or federal law or a municipal ordinance
  19-20  prohibiting the violation of an individual's civil rights or the
  19-21  discrimination against an individual on the basis of the
  19-22  individual's race, color, creed, or national origin; and
  19-23              (2)  the offense was committed on the licensed premises
  19-24  or in connection with the operation of the permittee's business.
  19-25        SECTION 21.  Section 16.01, Alcoholic Beverage Code, is
  19-26  amended to read as follows:
  19-27        Sec. 16.01.  Authorized Activities.  (a)  The holder of a
   20-1  winery permit may:
   20-2              (1)  manufacture, bottle, label, and package wine
   20-3  containing not more than 24 percent alcohol by volume;
   20-4              (2)  manufacture and import grape brandy for fortifying
   20-5  purposes only and to be used only on his licensed premises;
   20-6              (3)  sell wine in this state to holders of wholesaler's
   20-7  permits, winery permits, and wine bottler's permits;
   20-8              (4)  sell wine to ultimate consumers in unbroken
   20-9  packages for off-premises consumption in an amount not to exceed
  20-10  25,000 gallons annually;
  20-11              (5)  sell the wine outside this state to qualified
  20-12  persons;
  20-13              (6)  blend wines; and
  20-14              (7)  dispense free wine for consumption on the winery
  20-15  premises.
  20-16        (b)  The holder of a winery permit may manufacture and label
  20-17  wine for an adult in an amount not to exceed 30 gallons annually
  20-18  for the personal use of the adult.  Any amount of wine produced
  20-19  under this subsection is included in the annual total amount that
  20-20  may be sold by the holder under Subsection (a)(4) of this section.
  20-21  An adult for whom wine is manufactured and labeled under this
  20-22  subsection is not required to hold a license or permit issued under
  20-23  this code.
  20-24        (c)  The holder of a winery permit may conduct wine
  20-25  samplings,  including wine tastings at a retailer's premises.  A
  20-26  winery employee may open, touch, or pour wine, make a presentation,
  20-27  or answer questions at a wine sampling.  A wine sampling may not be
   21-1  held in a location where a wine sampling is otherwise prohibited by
   21-2  law.
   21-3        SECTION 22.  Chapter 22, Alcoholic Beverage Code, is amended
   21-4  by adding Section 22.13 to read as follows:
   21-5        Sec. 22.13.  TEMPORARY PACKAGE STORE PERMIT.  (a)  On
   21-6  application for a package store permit or a wine and beer
   21-7  retailer's off-premises permit, application for a temporary package
   21-8  store permit, and payment of the required fees including a fee for
   21-9  the temporary permit as set by the commission, the commission may
  21-10  issue a temporary package store permit to a person who has entered
  21-11  into a contract to purchase a package store from a holder of a
  21-12  package store permit or a wine and beer retailer's off-premises
  21-13  permit.
  21-14        (b)  Unless revoked or cancelled by the commission, a
  21-15  temporary package store permit is valid only during the period that
  21-16  the application for a package store permit is being considered by
  21-17  the commission ending on the day that the package store permit is
  21-18  issued or denied by the commission or by a county judge.
  21-19        (c)  The holder of a temporary package store permit has all
  21-20  of the rights, privileges, and duties of a holder of a package
  21-21  store permit.
  21-22        SECTION 23.  Sections 25.03(a) and (b), Alcoholic Beverage
  21-23  Code, are amended to read as follows:
  21-24        (a)  A wine and beer retailer's permit may be issued for
  21-25  railway dining, buffet, or club cars on the payment of a fee set by
  21-26  the commission <on the payment of an annual state fee of $30 for
  21-27  each car>.
   22-1        (b)  A wine and beer retailer's permit may be issued for a
   22-2  regularly scheduled excursion boat which is licensed by the United
   22-3  States Coast Guard to carry passengers on the navigable waters of
   22-4  the state and which has a tonnage of not less than 35 tons, a
   22-5  length of not less than 55 feet, and a passenger capacity of not
   22-6  less than 45 passengers.  <The annual state fee for the permit is
   22-7  $130.>
   22-8        SECTION 24.  Section 28.04(d), Alcoholic Beverage Code, is
   22-9  amended to read as follows:
  22-10        (d)  This section does not apply to a change in corporate
  22-11  control:
  22-12              (1)  brought about by the death of a shareholder if his
  22-13  surviving spouse or descendants are his successors in interest; or
  22-14              (2)  brought about when legal or beneficial ownership
  22-15  of over 50 percent of the stock of the corporation has been
  22-16  transferred:
  22-17                    (A)  to a person who possesses the qualifications
  22-18  required of other applicants for permits and is currently an
  22-19  officer of the corporation and has been an officer of the
  22-20  corporation ever since the date the original permit was issued; or
  22-21                    (B)  if the permittee pays a fee set by the
  22-22  commission <of $500> and notifies the commission, on completed
  22-23  forms and attachments prescribed by the commission, of the proposed
  22-24  transfer at least 10 days prior to the date the transfer is to
  22-25  become effective and the commission does not find that
  22-26  circumstances exist that would be grounds for the denial of a
  22-27  renewal of the permit under Section 11.46 of this code and provided
   23-1  the ownership of the corporation immediately after the transfer
   23-2  satisfies the requirements of this code.  The commission may
   23-3  require the permittee to furnish a new bond as provided in Section
   23-4  204.01(a)(3), and where a new bond is required, the permittee shall
   23-5  not be eligible for a bond exemption under Section 204.01(f) until
   23-6  36 months after the date on which the transfer takes effect.
   23-7        SECTION 25.  Section 28.14, Alcoholic Beverage Code, is
   23-8  amended to read as follows:
   23-9        Sec. 28.14.  Merger or Consolidation of Corporations Holding
  23-10  Mixed Beverage Permits.  When two or more corporations which have
  23-11  substantially similar ownership and which hold mixed beverage
  23-12  permits issued by the commission merge or consolidate and pay to
  23-13  the commission a <$100> fee set by the commission for each licensed
  23-14  premises, the surviving corporation shall succeed to all the
  23-15  privileges of such corporations in the permits held by such
  23-16  corporations provided the surviving corporation is qualified to
  23-17  hold such permits under this code.  For purposes of this section,
  23-18  two corporations have substantially similar ownership if 90 percent
  23-19  or more of both corporations is owned by the same persons.
  23-20        SECTION 26.  Section 32.09(b), Alcoholic Beverage Code, is
  23-21  amended to read as follows:
  23-22        (b)  At the time of his admission the temporary member shall
  23-23  pay the club a fee set by the commission <of $3,> which shall
  23-24  represent the fee payable by the permittee to the state.  All fees
  23-25  and payments from temporary members shall be collected in cash or
  23-26  through credit cards approved by the commission or administrator.
  23-27        SECTION 27.  Section 37.11(e), Alcoholic Beverage Code, is
   24-1  amended to read as follows:
   24-2        (e)  No certificate of approval shall be issued unless the
   24-3  application is accompanied by a fee in the amount set by <of $25
   24-4  payable to> the commission.  A copy of the certificate shall be
   24-5  kept on file in the office of the commission.
   24-6        SECTION 28.  Section 42.04, Alcoholic Beverage Code, is
   24-7  amended by adding Subsection (d) to read as follows:
   24-8        (d)  A holder of a winery permit is exempt from the
   24-9  requirements of this section.
  24-10        SECTION 29.  Section 45.03(d), Alcoholic Beverage Code, is
  24-11  amended to read as follows:
  24-12        (d)  Except as provided by Section 45.04 of this code, no
  24-13  <No> storage permit may be issued for a location in a dry area.
  24-14        SECTION 30.  Chapter 45,  Alcoholic Beverage Code, is amended
  24-15  by adding Section 45.04 to read as follows:
  24-16        Sec. 45.04.  WINERY STORAGE PERMIT.  A holder of a winery
  24-17  permit whose winery is located in a county all or part of which is
  24-18  a dry area may obtain a storage permit to store the winery's
  24-19  product in a dry area of that county if:
  24-20              (1)  the holder of the winery permit obtains a permit
  24-21  for each place of storage; and
  24-22              (2)  the product to be stored is owned by the holder of
  24-23  the winery permit and remains in the possession of the holder.
  24-24        SECTION 31.  Section 46.03, Alcoholic Beverage Code, is
  24-25  amended to read as follows:
  24-26        Sec. 46.03.  Qualifications for Permit.  (a)  A bonded
  24-27  warehouse permit may be issued to any public bonded warehouse that:
   25-1              (1)  <not located in a dry area which> derives at least
   25-2  50 percent of its gross revenue in a bona fide manner during each
   25-3  three-month period from the storage of goods or merchandise other
   25-4  than liquor; and
   25-5              (2)  is not located in a dry area.
   25-6        (b)  A bonded warehouse permit may be issued to a public
   25-7  bonded warehouse described by Subsection (a)(1) of this section
   25-8  that is located in a dry area only for the storage of the wine of
   25-9  the holder of a winery permit who holds a permit authorizing its
  25-10  storage in a public bonded warehouse.
  25-11        SECTION 32.  Section 61.71(a), Alcoholic Beverage Code, is
  25-12  amended to read as follows:
  25-13        (a)  The commission or administrator may suspend <for not
  25-14  more than 60 days> or cancel an original or renewal retail dealer's
  25-15  on- or off-premise license if it is found, after notice and
  25-16  hearing, that the licensee:
  25-17              (1)  violated a provision of this code or a rule of the
  25-18  commission during the existence of the license sought to be
  25-19  cancelled or suspended or during the immediately preceding license
  25-20  period;
  25-21              (2)  was finally convicted for violating a penal
  25-22  provision of this code;
  25-23              (3)  was finally convicted of a felony while holding an
  25-24  original or renewal license;
  25-25              (4)  made a false statement or a misrepresentation in
  25-26  his original application or a renewal application;
  25-27              (5)  with criminal negligence <knowingly> sold, served,
   26-1  or delivered beer to a minor;
   26-2              (6)  sold, served, or delivered beer to an intoxicated
   26-3  person;
   26-4              (7)  sold, served, or delivered beer at a time when its
   26-5  sale is prohibited;
   26-6              (8)  entered or offered to enter an agreement,
   26-7  condition, or system which would constitute the sale or possession
   26-8  of alcoholic beverages on consignment;
   26-9              (9)  possessed on the licensed premises, or on adjacent
  26-10  premises directly or indirectly under his control, an alcoholic
  26-11  beverage not authorized to be sold on the licensed premises, or
  26-12  permitted an agent, servant, or employee to do so, except as
  26-13  permitted by Section 22.06, 24.05, or 102.05 of this code;
  26-14              (10)  does not have at his licensed premises running
  26-15  water, if it is available, and separate toilets for both sexes
  26-16  which are properly identified;
  26-17              (11)  permitted a person on the licensed premises to
  26-18  engage in conduct which is lewd, immoral, or offensive to public
  26-19  decency;
  26-20              (12)  employed a person under 18 years of age to sell,
  26-21  handle, or dispense beer, or to assist in doing so, in an
  26-22  establishment where beer is sold for on-premises consumption;
  26-23              (13)  conspired with a person to violate Section
  26-24  101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
  26-25  108.04-108.06 of this code, or a rule promulgated under Section
  26-26  5.40 of this code, or accepted a benefit from an act prohibited by
  26-27  any of these sections or rules;
   27-1              (14)  refused to permit or interfered with an
   27-2  inspection of the licensed premises by an authorized representative
   27-3  of the commission or a peace officer;
   27-4              (15)  permitted the use or display of his license in
   27-5  the conduct of a business for the benefit of a person not
   27-6  authorized by law to have an interest in the license;
   27-7              (16)  maintained blinds or barriers at his place of
   27-8  business in violation of this code;
   27-9              (17)  conducted his business in a place or manner which
  27-10  warrants the cancellation or suspension of the license based on the
  27-11  general welfare, health, peace, morals, safety, and sense of
  27-12  decency of the people;
  27-13              (18)  consumed an alcoholic beverage or permitted one
  27-14  to be consumed on the licensed premises at a time when the
  27-15  consumption of alcoholic beverages is prohibited by this code;
  27-16              (19)  purchased beer for the purpose of resale from a
  27-17  person other than the holder of a manufacturer's or distributor's
  27-18  license;
  27-19              (20)  acquired an alcoholic beverage for the purpose of
  27-20  resale from another retail dealer of alcoholic beverages;
  27-21              (21)  owned an interest of any kind in the business or
  27-22  premises of the holder of a distributor's license;
  27-23              (22)  purchased, sold, offered for sale, distributed,
  27-24  or delivered an alcoholic beverage, or consumed an alcoholic
  27-25  beverage or permitted one to be consumed on the licensed premises
  27-26  while his license was under suspension;
  27-27              (23)  purchased, possessed, stored, sold, or offered
   28-1  for sale beer in or from an original package bearing a brand or
   28-2  trade name of a manufacturer other than the brand or trade name
   28-3  shown on the container;
   28-4              (24)  habitually uses alcoholic beverages to excess, is
   28-5  mentally incompetent, or is physically unable to manage his
   28-6  establishment;
   28-7              (25)  imported beer into this state except as
   28-8  authorized by Section 107.07 of this code;
   28-9              (26)  occupied premises in which the holder of a
  28-10  manufacturer's or distributor's license had an interest of any
  28-11  kind;
  28-12              (27)  knowingly permitted a person who had an interest
  28-13  in a permit or license which was cancelled for cause to sell,
  28-14  handle, or assist in selling or handling alcoholic beverages on the
  28-15  licensed premises within one year after the cancellation;
  28-16              (28)  was financially interested in a place of business
  28-17  engaged in the selling of distilled spirits or permitted a person
  28-18  having an interest in that type of business to have a financial
  28-19  interest in the business authorized by his license, except as
  28-20  permitted by Section 22.06, 24.05, or 102.05 of this code;
  28-21              (29)  is residentially domiciled with or related to a
  28-22  person engaged in selling distilled spirits, except as permitted by
  28-23  Section 22.06, 24.05, or 102.05 of this code, so that there is a
  28-24  community of interests which the commission or administrator finds
  28-25  contrary to the purposes of this code; or
  28-26              (30)  is residentially domiciled with or related to a
  28-27  person whose license has been cancelled within the preceding 12
   29-1  months so that there is a community of interests which the
   29-2  commission or administrator finds contrary to the purposes of this
   29-3  code.
   29-4        SECTION 33.  Section 61.711, Alcoholic Beverage Code, is
   29-5  amended to read as follows:
   29-6        Sec. 61.711.  Retail Dealer:  Conviction of Offense Relating
   29-7  to Discrimination.  The commission or administrator may suspend
   29-8  <for not more than 60 days> or cancel an original or renewal retail
   29-9  dealer's on- or off-premise license if it is found after notice and
  29-10  hearing that:
  29-11              (1)  the licensee has been finally convicted of any
  29-12  offense under a state or federal law or a municipal ordinance
  29-13  prohibiting the violation of an individual's civil rights or the
  29-14  discrimination against an individual on the basis of the
  29-15  individual's race, color, creed, or national origin; and
  29-16              (2)  the offense was committed on the licensed premises
  29-17  or in connection with the operation of the licensee's business.
  29-18        SECTION 34.  Section 61.712, Alcoholic Beverage Code, is
  29-19  amended to read as follows:
  29-20        Sec. 61.712.  Grounds for Cancellation or Suspension:  Sales
  29-21  Tax.  The commission or administrator may refuse to renew or, after
  29-22  notice and hearing, suspend <for not more than 60 days> or cancel a
  29-23  license if the commission or administrator finds that the licensee:
  29-24              (1)  no longer holds a sales tax permit, if required,
  29-25  for the place of business covered by the license; or
  29-26              (2)  is shown on the records of the comptroller of
  29-27  public accounts as being subject to a final determination of taxes
   30-1  due and payable under the Limited Sales, Excise and Use Tax Act
   30-2  (Chapter 151, Tax Code), or is shown on the records of the
   30-3  comptroller of public accounts as being subject to a final
   30-4  determination of taxes due and payable under Chapter 321, Tax Code.
   30-5        SECTION 35.  Section 61.73, Alcoholic Beverage Code, is
   30-6  amended to read as follows:
   30-7        Sec. 61.73.  Retail Dealer:  Credit Purchase or Dishonored
   30-8  Check.  (a)  The commission or administrator may suspend <for not
   30-9  more than 60 days> or cancel an original or renewal retail dealer's
  30-10  on- or off-premise license if it is found, after notice and
  30-11  hearing, that the licensee purchased beer or the containers or
  30-12  original packages in which it is contained or packaged except by
  30-13  cash payment to the seller on or before delivery.  No holder of
  30-14  either type of license may use a maneuver, device, subterfuge, or
  30-15  shift by which credit is accepted, including payment or attempted
  30-16  payment by a postdated check or draft.   Credit for the return of
  30-17  unbroken or undamaged containers or original packages previously
  30-18  paid for by the purchaser may be accepted as cash by the seller in
  30-19  an amount not more than the amount originally paid for them by the
  30-20  purchaser.
  30-21        (b)  The commission or administrator may suspend <for not
  30-22  more than 60 days> or cancel an original or renewal retail dealer's
  30-23  on- or off-premise license if it is found, after notice and
  30-24  hearing, that the licensee gave a check, as maker or endorser, or a
  30-25  draft, as drawer or endorser, as full or partial payment for beer
  30-26  or the containers or packages in which it is contained or packaged,
  30-27  which is dishonored when presented for payment.
   31-1        SECTION 36.  Section 61.74(a), Alcoholic Beverage Code, is
   31-2  amended to read as follows:
   31-3        (a)  The commission or administrator may suspend <for not
   31-4  more than 60 days> or cancel an original or renewal general, local,
   31-5  or branch distributor's license if it is found, after notice and
   31-6  hearing, that the licensee:
   31-7              (1)  violated a provision of this code or a rule of the
   31-8  commission during the existence of the license sought to be
   31-9  cancelled or suspended or during the immediately preceding license
  31-10  period;
  31-11              (2)  was finally convicted for violating a penal
  31-12  provision of this code;
  31-13              (3)  was finally convicted of a felony while holding an
  31-14  original or renewal license;
  31-15              (4)  violated Section 101.41-101.43, 101.68,
  31-16  102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this code, or a
  31-17  rule or regulation promulgated under Section 5.40 of this code;
  31-18              (5)  failed to comply with a requirement of the
  31-19  commission relating to the keeping of records or making of reports;
  31-20              (6)  failed to pay any tax due the state on any beer he
  31-21  sold, stored, or transported;
  31-22              (7)  refused to permit or interfered with an inspection
  31-23  of his licensed premises, vehicles, books, or records by an
  31-24  authorized representative of the commission;
  31-25              (8)  consummated a sale of beer outside the county or
  31-26  counties in which he was authorized to sell beer by his license;
  31-27              (9)  purchased, sold, offered for sale, distributed, or
   32-1  delivered beer while his license was under suspension;
   32-2              (10)  permitted the use of his license in the operation
   32-3  of a business conducted for the benefit of a person not authorized
   32-4  by law to have an interest in the business;
   32-5              (11)  made a false or misleading representation or
   32-6  statement in his original application or a renewal application;
   32-7              (12)  habitually uses alcoholic beverages to excess, is
   32-8  mentally incompetent, or is physically unable to manage his
   32-9  establishment;
  32-10              (13)  misrepresented any beer sold by him to a retailer
  32-11  or to the public;
  32-12              (14)  with criminal negligence <knowingly> sold or
  32-13  delivered beer to a minor; or
  32-14              (15)  purchased, possessed, stored, sold, or offered
  32-15  for sale beer in an original package bearing a brand or trade name
  32-16  of a manufacturer other than the brand or trade name of the
  32-17  manufacturer shown on the container.
  32-18        SECTION 37.  Section 61.75, Alcoholic Beverage Code, is
  32-19  amended to read as follows:
  32-20        Sec. 61.75.  Suspension of Manufacturer's License.  If a
  32-21  manufacturer violates a provision of this code or a rule of the
  32-22  commission, the commission or administrator may order the
  32-23  manufacturer to cease and desist from the violation and may suspend
  32-24  its license, after notice and hearing<, until the licensee obeys
  32-25  the order>.
  32-26        SECTION 38.  Section 63.02, Alcoholic Beverage Code, is
  32-27  amended to read as follows:
   33-1        Sec. 63.02.  No County or City Fee.  <The annual state fee
   33-2  for a nonresident manufacturer's license is $750.>   No county or
   33-3  city is entitled to a fee for the issuance of the license.
   33-4        SECTION 39.  Section 69.03, Alcoholic Beverage Code, is
   33-5  amended to read as follows:
   33-6        Sec. 69.03.  Issuance of License for Railway Cars.  A retail
   33-7  dealer's on-premise license may be issued for a railway dining,
   33-8  buffet, or club car.  Application for a license of this type shall
   33-9  be made directly to the commission<,> and accompanied by a fee set
  33-10  by the commission <the annual state fee is $30 for each car>.
  33-11        SECTION 40.  Chapter 71, Alcoholic Beverage Code, is amended
  33-12  by adding Section 71.11 to read as follows:
  33-13        Sec. 71.11.  TEMPORARY RETAIL DEALER'S OFF-PREMISES LICENSE.
  33-14  (a)  On application for a retail dealer's off-premises license,
  33-15  application for a temporary retail dealer's off-premises license,
  33-16  and payment of the required fees including a fee for the temporary
  33-17  license as set by the commission, the commission may issue a
  33-18  temporary retail dealer's off-premises license to a person who has
  33-19  entered into a contract to purchase a premises from a holder of a
  33-20  retail dealer's off-premises license and a package store permit.
  33-21        (b)  Unless revoked or cancelled by the commission, a
  33-22  temporary retail dealer's off-premises license is valid only during
  33-23  the period that the application for a retail dealer's off-premises
  33-24  license is being considered by the commission and county judge
  33-25  ending on the day that the retail dealer's off-premises license is
  33-26  issued or denied.
  33-27        (c)  The holder of a temporary retail dealer's off-premises
   34-1  license has all of the rights, privileges, and duties of a holder
   34-2  of a retail dealer's off-premises license.
   34-3        SECTION 41.  Subtitle B, Title 3, Alcoholic Beverage Code, is
   34-4  amended by adding Chapter 74 to read as follows:
   34-5                     CHAPTER 74.  BREW PUB LICENSE
   34-6        Sec. 74.01.  AUTHORIZED ACTIVITIES.  (a)  Notwithstanding any
   34-7  restriction on intra-industry relationships by Chapter 102 of this
   34-8  code and subject to the other restrictions of this chapter, a
   34-9  holder of a brew pub license may engage in the activities provided
  34-10  by Subsection (b) of this section.
  34-11        (b)  A holder of a brew pub license may engage on the
  34-12  premises of the licensee in the same activities as the holder of
  34-13  any of the following licenses or permits:
  34-14              (1)  a manufacturer's license under Chapter 62 of this
  34-15  code;
  34-16              (2)  a brewer's permit under Chapter 12 of this code;
  34-17              (3)  a mixed beverage permit under Chapter 28 of this
  34-18  code;
  34-19              (4)  a mixed beverage late hours permit under Chapter
  34-20  29 of this code;
  34-21              (5)  a wine and beer retailer's permit under Chapter 25
  34-22  of this code;
  34-23              (6)  a retail dealer's on-premise license under Chapter
  34-24  69 of this code; or
  34-25              (7)  a retail dealer's on-premise late hours license
  34-26  under Chapter 70 of this code.
  34-27        Sec. 74.02.  FEE.  An applicant for issuance or renewal of a
   35-1  brew pub license shall indicate to the commission the activity or
   35-2  combination of activities permitted under Section 74.01(b) of this
   35-3  code in which the applicant intends to engage.  The fee set by the
   35-4  commission for the issuance or renewal of the applicant's brew pub
   35-5  license is the sum of the license or permit fees for a license or
   35-6  permit otherwise required to engage in that activity or combination
   35-7  of activities.
   35-8        Sec. 74.03.  RESTRICTIONS.  A holder of a brew pub license
   35-9  may not:
  35-10              (1)  sell or offer for off-premises consumption any
  35-11  alcoholic beverage it is licensed or permitted to provide;
  35-12              (2)  import, export, or distribute any alcoholic
  35-13  beverage;
  35-14              (3)  sell or offer any alcoholic beverage to any person
  35-15  other than:
  35-16                    (A)  the ultimate consumer;
  35-17                    (B)  the holder of a general, local, or branch
  35-18  distributor's license or the holder of a wholesaler's, general
  35-19  class B wholesaler's, or local class B wholesaler's permit; or
  35-20                    (C)  qualified persons outside the state;
  35-21              (4)  hold any other license or permit issued by the
  35-22  commission;
  35-23              (5)  produce more than 75,000 barrels of beer or liquor
  35-24  annually; or
  35-25              (6)  engage in any activity that the holder of the brew
  35-26  pub license did not indicate to the commission in Section 74.02 of
  35-27  this code.
   36-1        Sec. 74.04.  LICENSE AND TAX REQUIREMENTS.  Except as
   36-2  otherwise provided by this chapter, a holder of a brew pub license
   36-3  is subject to the requirements, restrictions, and tax obligations
   36-4  of a license or permit holder who engages in an activity or
   36-5  combination of activities in which the holder of the brew pub
   36-6  license indicated to the commission under Section 74.02 of this
   36-7  code that the holder intended to engage.
   36-8        Sec. 74.05.  INTRA-INDUSTRY RELATIONSHIPS.  Except for the
   36-9  acts allowed under Section 74.01 of this code, a holder of a brew
  36-10  pub license, when acting as a brewer, manufacturer, or retailer,
  36-11  shall comply with the restrictions of Chapter 102 of this code in
  36-12  dealing with another wholesaler, retailer, or manufacturer.
  36-13        SECTION 42.  Section 101.67(d), Alcoholic Beverage Code, is
  36-14  amended to read as follows:
  36-15        (d)  If the commission determines that the sample and label
  36-16  required by Subsection (a) of this section comply with the
  36-17  provisions of this code and the rules of the commission, the
  36-18  commission shall issue a certificate of approval upon receipt of a
  36-19  fee set by the commission <in the amount of $25>.  A copy of the
  36-20  certificate shall be kept on file in the office of the commission.
  36-21        SECTION 43.  Section 102.07, Alcoholic Beverage Code, is
  36-22  amended by amending Subsection (a) and by adding Subsections (e)
  36-23  and (f) to read as follows:
  36-24        (a)  Except as provided in Subsections <Subsection> (b) and
  36-25  (e) of this section, no person who owns or has an interest in the
  36-26  business of a distiller, brewer, rectifier, wholesaler, class B
  36-27  wholesaler, winery, or wine bottler, nor the agent, servant, or
   37-1  employee of such a person, may:
   37-2              (1)  own or have a direct or indirect interest in the
   37-3  business, premises, equipment, or fixtures of a retailer;
   37-4              (2)  furnish, give, or lend any money, service, or
   37-5  thing of value to a retailer;
   37-6              (3)  guarantee a financial obligation of a retailer;
   37-7              (4)  make or offer to enter an agreement, condition, or
   37-8  system which will in effect amount to the shipment and delivery of
   37-9  alcoholic beverages on consignment;
  37-10              (5)  furnish, give, rent, lend, or sell to a retail
  37-11  dealer any equipment, fixtures, or supplies to be used in selling
  37-12  or dispensing alcoholic beverages;
  37-13              (6)  pay or make an allowance to a retailer for a
  37-14  special advertising or distribution service;
  37-15              (7)  allow an excessive discount to a retailer;
  37-16              (8)  offer a prize, premium, gift, or similar
  37-17  inducement to a retailer or consumer or to the agent, servant, or
  37-18  employee of either.
  37-19        (e)  On obtaining permission from a retailer, wholesaler,
  37-20  class B wholesaler, general distributor, local distributor, branch
  37-21  distributor, or winery or the agent or employee of a wholesaler,
  37-22  class B wholesaler, general distributor, local distributor, branch
  37-23  distributor, or winery may restock the retailer's shelves with the
  37-24  product of the wholesaler, class B wholesaler, general distributor,
  37-25  local distributor, branch distributor, or winery.  Under this
  37-26  subsection, the agent or employee of a wholesaler, class B
  37-27  wholesaler, general distributor, local distributor, branch
   38-1  distributor, or winery may restock only the stock of that
   38-2  wholesaler, class B wholesaler, general distributor, local
   38-3  distributor, branch distributor, or winery and may not touch or
   38-4  move the stock of another wholesaler, class B wholesaler, general
   38-5  distributor, local distributor, branch distributor, or winery.
   38-6        (f)  In this section, "restocking" means rotating a product
   38-7  on a retailer's shelf to prevent deterioration of the product,
   38-8  placing a product on a retailer's shelf, or removing a product from
   38-9  a retailer's shelf.
  38-10        SECTION 44.  Section 106.06(a), Alcoholic Beverage Code, is
  38-11  amended to read as follows:
  38-12        (a)  Except as provided in Subsection (b) of this section, a
  38-13  person commits an offense if he purchases an alcoholic beverage for
  38-14  or gives or with criminal negligence <knowingly> makes available an
  38-15  alcoholic beverage to a minor.
  38-16        SECTION 45.  Section 106.13(a), Alcoholic Beverage Code, is
  38-17  amended to read as follows:
  38-18        (a)  Except as provided in Subsections (b) and (c) of this
  38-19  section, the commission or administrator may cancel or suspend <for
  38-20  not more than 60 days> a retail license or permit or a private club
  38-21  registration permit if it is found, on notice and hearing, that the
  38-22  licensee or permittee with criminal negligence <knowingly> sold,
  38-23  served, dispensed, or delivered an alcoholic beverage to a minor in
  38-24  violation of this code or with criminal negligence <knowingly>
  38-25  permitted a minor to violate Section 106.04 or 106.05 of this code
  38-26  on the licensed premises.
  38-27        SECTION 46.  Section 109.02, Alcoholic Beverage Code, is
   39-1  amended to read as follows:
   39-2        Sec. 109.02.  Registration of Beverages With Commission.
   39-3  Immediately after taking possession of the alcoholic beverages, the
   39-4  insurer or insurance salvor shall register them with the
   39-5  commission, furnishing the commission a detailed inventory and the
   39-6  exact location of the beverages.  At the time of registration, the
   39-7  registrant shall post with the commission a surety bond in an
   39-8  amount that the administrator finds adequate to protect the state
   39-9  against the taxes due on the beverages, if any are due.  The
  39-10  registrant shall remit with the registration a fee set by the
  39-11  commission <of $10>.  The fee only permits the sale of the
  39-12  beverages listed in the registration.
  39-13        SECTION 47.  Subchapter C, Chapter 109, Alcoholic Beverage
  39-14  Code, is amended by adding Section 109.34 to read as follows:
  39-15        Sec. 109.34.  MUNICIPAL REGULATION OF OPEN CONTAINERS.  (a)
  39-16  The governing body of a home-rule municipality by ordinance may
  39-17  prohibit, limit, or restrict the consumption of an alcoholic
  39-18  beverage or the possession of an alcoholic beverage in an open
  39-19  container with intent to consume in all or any designated part of
  39-20  the public places in the municipality.  The ordinance may not apply
  39-21  to premises licensed or permitted for on-premise consumption.
  39-22        (b)  The governing body may grant a variance to the ordinance
  39-23  in specific circumstances if the governing body, after
  39-24  consideration of public health and safety and the equities of the
  39-25  specific circumstances, determines that enforcement of the
  39-26  ordinance:
  39-27              (1)  is not in the best interest of the public;
   40-1              (2)  constitutes waste or inefficient use of land or
   40-2  other resources;
   40-3              (3)  does not serve its intended purpose; or
   40-4              (4)  is not effective or necessary.
   40-5        (c)  For the purposes of an ordinance adopted under this
   40-6  section, there is a rebuttable presumption that a person in
   40-7  possession of an alcoholic beverage in an open container intends to
   40-8  consume the beverage.
   40-9        (d)  In this section:
  40-10              (1)  "Possession" means physical possession or actual
  40-11  care, custody, control, or management.
  40-12              (2)  "Public place" means any area, facility, or land
  40-13  that the municipality owns or controls or in which the municipality
  40-14  has an easement, including a public sidewalk, alley, street,
  40-15  highway, park, parking lot, pedestrian mall, passageway, tunnel,
  40-16  bridge, or skywalk.
  40-17        SECTION 48.  Section 109.53, Alcoholic Beverage Code, is
  40-18  amended to read as follows:
  40-19        Sec. 109.53.  Citizenship of Permittee; Control of Premises;
  40-20  Subterfuge Ownership; Etc.  (a)  Except as provided by Subsection
  40-21  (b) of this section, no <No> person who has not been a citizen of
  40-22  Texas for a period of three years immediately preceding the filing
  40-23  of his application therefor shall be eligible to receive a permit
  40-24  under this code.  No permit except a brewer's permit, and such
  40-25  other licenses and permits as are necessary to the operation of a
  40-26  brewer's permit, shall be issued to a corporation unless the same
  40-27  be incorporated under the laws of the state and unless at least 51
   41-1  percent of the stock of the corporation is owned at all times by
   41-2  citizens who have resided within the state for a period of three
   41-3  years and who possess the qualifications required of other
   41-4  applicants for permits; provided, however, that the restrictions
   41-5  contained in the preceding clause shall not apply to domestic or
   41-6  foreign corporations that were engaged in the legal alcoholic
   41-7  beverage business in this state under charter or permit prior to
   41-8  August 24, 1935.  Partnerships, firms, and associations applying
   41-9  for permits shall be composed wholly of citizens possessing the
  41-10  qualifications above enumerated.  Any corporation (except carrier)
  41-11  holding a permit under this code which shall violate any provisions
  41-12  hereof, or any rule or regulation promulgated hereunder, shall be
  41-13  subject to forfeiture of its charter and it shall be the duty of
  41-14  the attorney general, when any such violation is called to his
  41-15  attention, to file a suit for such cancellation in a district court
  41-16  of Travis County.  Such provisions of this section as require Texas
  41-17  citizenship or require incorporation in Texas shall not apply to
  41-18  the holders of agent's, industrial, medicinal and carrier's
  41-19  permits.  No person shall sell, warehouse, store or solicit orders
  41-20  for any liquor in any wet area without first having procured a
  41-21  permit of the class required for such privilege, or consent to the
  41-22  use of or allow his permit to be displayed by or used by any person
  41-23  other than the one to whom the permit was issued.  It is the intent
  41-24  of the legislature to prevent subterfuge ownership of or unlawful
  41-25  use of a permit or the premises covered by such permit; and all
  41-26  provisions of this code shall be liberally construed to carry out
  41-27  this intent, and it shall be the duty of the commission or the
   42-1  administrator to provide strict adherence to the general policy of
   42-2  preventing subterfuge ownership and related practices hereinafter
   42-3  declared to constitute unlawful trade practices.  No applicant for
   42-4  a package store permit or a renewal thereof shall have authority to
   42-5  designate as "premise" and the commission or administrator shall
   42-6  not approve a lesser area than that specifically defined as
   42-7  "premise" in Section 11.49(a) of this code.  Every permittee shall
   42-8  have and maintain exclusive occupancy and control of the entire
   42-9  licensed premises in every phase of the storage, distribution,
  42-10  possession, and transportation and sale of all alcoholic beverages
  42-11  purchased, stored or sold on the licensed premises.  Any device,
  42-12  scheme or plan which surrenders control of the employees, premises
  42-13  or business of the permittee to persons other than the permittee
  42-14  shall be unlawful.  No minor, unless accompanied by his or her
  42-15  parent, guardian, adult husband or adult wife, or other adult
  42-16  person into whose custody he or she has been committed for the time
  42-17  by some court, shall knowingly be allowed on the premises of the
  42-18  holder of a package store permit.  The prohibition against the
  42-19  presence of a minor on the premises of the holder of a package
  42-20  store permit does not apply to the presence on the premises of the
  42-21  holder or a person lawfully employed by the holder.  Any package
  42-22  store permittee who shall be injured in his business or property by
  42-23  another package store permittee by reason of anything prohibited in
  42-24  this section may institute suit in any district court in the county
  42-25  wherein the violation is alleged to have occurred to require
  42-26  enforcement by injunctive procedures and/or to recover threefold
  42-27  the damages by him sustained; plus costs of suit including a
   43-1  reasonable attorney's fee.  The provision prohibiting the licensing
   43-2  of only a portion of a building as premise for a package store
   43-3  permit shall not apply to hotels as already defined in this code.
   43-4        (b)  The requirement that a person be a citizen of Texas for
   43-5  a period of three years immediately preceding the filing of an
   43-6  application does not apply to a person applying for a license or
   43-7  permit under Chapters 25-34, 44, 48-51, and 69-72 of this code.
   43-8        SECTION 49.  Subchapter D, Chapter 109, Alcoholic Beverage
   43-9  Code, is amended by adding Sections 109.531 and 109.532 to read as
  43-10  follows:
  43-11        Sec. 109.531.  ADDITIONAL REQUIREMENTS FOR APPLICATION OR
  43-12  RENEWAL OF PERMIT OR LICENSE BY OUT-OF-STATE RESIDENTS.  In
  43-13  addition to any other requirement for a license or permit under
  43-14  this code, a person who has not been a citizen of this state for a
  43-15  period of three years preceding the date the person filed an
  43-16  application for a permit or license under Chapters 25-34, 44,
  43-17  48-51, and 69-72 of this code shall:
  43-18              (1)  designate an agent, who is a citizen of this
  43-19  state, to represent the person in matters before the commission and
  43-20  to be responsible for the proper conduct of any activity of the
  43-21  licensee or permittee; and
  43-22              (2)  submit to a criminal history background check.
  43-23        Sec. 109.532.  CRIMINAL HISTORY BACKGROUND CHECKS.  (a)  The
  43-24  commission shall establish a uniform method of obtaining criminal
  43-25  history information.  The uniform method must require:
  43-26              (1)  either a complete set of fingerprints or the
  43-27  complete name of the person being investigated to be submitted to
   44-1  the Department of Public Safety or to another law enforcement
   44-2  agency; and
   44-3              (2)  if fingerprints are submitted, the fingerprints
   44-4  must be submitted to the Federal Bureau of Investigation for
   44-5  further information if a relevant disqualifying record or other
   44-6  substantive information is not obtained from a state or local law
   44-7  enforcement agency.
   44-8        (b)  The commission may deny a license or permit or the
   44-9  renewal of a license or permit for an applicant if:
  44-10              (1)  the commission determines that a previous criminal
  44-11  conviction or deferred adjudication indicates that the applicant is
  44-12  not qualified or suitable for a license or permit; or
  44-13              (2)  the applicant fails to provide a complete set of
  44-14  fingerprints if the commission establishes that method of obtaining
  44-15  conviction information.
  44-16        (c)  All criminal history information received by the
  44-17  commission is privileged information and is for the exclusive use
  44-18  of the commission.  The information may be released or otherwise
  44-19  disclosed to any other person or agency only:
  44-20              (1)  on court order; or
  44-21              (2)  with the consent of the person being investigated.
  44-22        (d)  The commission shall collect and destroy criminal
  44-23  history information relating to a person immediately after the
  44-24  commission makes a decision on the eligibility of the person for
  44-25  registration.
  44-26        (e)  A person commits an offense if the person releases or
  44-27  discloses in violation of this section criminal history information
   45-1  received by the commission.  An offense under this subsection is a
   45-2  felony of the second degree.
   45-3        (f)  The commission may charge a fee to cover the cost of a
   45-4  criminal history background check.
   45-5        SECTION 50.  Subchapter D, Chapter 109, Alcoholic Beverage
   45-6  Code, is amended by adding  Section 109.58 to read as follows:
   45-7        Sec. 109.58.  CHARITABLE CONTRIBUTIONS AND SPONSORSHIPS.
   45-8  Notwithstanding Section 102.07 or 108.04 of this code, the
   45-9  commission may adopt rules for a distiller, brewer, rectifier,
  45-10  winery, wine bottler, distributor, or wholesaler that set definite
  45-11  limitations consistent with the general provisions of this code,
  45-12  relaxing the restriction of Sections 102.14, 102.15, and 108.06 of
  45-13  this code, with respect to:
  45-14              (1)  the sale or gift of novelties advertising the
  45-15  product of a manufacturer or distributor;
  45-16              (2)  the making of gifts to civil, religious, or
  45-17  charitable organizations;
  45-18              (3)  the lending of equipment for special occasions;
  45-19  and
  45-20              (4)  acts of a purely courtesy nature.
  45-21        SECTION 51.  Subchapter A, Chapter 201, Alcoholic Beverage
  45-22  Code, is amended by adding Section 201.075 to read as follows:
  45-23        Sec. 201.075.  SUMMARY SUSPENSION.  (a)  The commission may
  45-24  summarily suspend, without a hearing, the permit of a permittee who
  45-25  fails to file a report or return or to make a tax payment required
  45-26  by this subchapter.  The Administrative Procedure and Texas
  45-27  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
   46-1  not apply to the commission in the enforcement and administration
   46-2  of this section.
   46-3        (b)  A suspension under this section takes effect on the
   46-4  third day after the date the notice of suspension is given.  The
   46-5  notice shall be given to the permittee or the permittee's agent or
   46-6  employee by registered or certified mail if not given in person.
   46-7        (c)  The commission shall terminate a suspension made under
   46-8  this section when the permittee files all required returns and
   46-9  makes all required tax payments that are due.
  46-10        SECTION 52.  Subchapter B, Chapter 201, Alcoholic Beverage
  46-11  Code, is amended by adding Section 201.53 to read as follows:
  46-12        Sec. 201.53.  SUMMARY SUSPENSION.  (a)  The commission may
  46-13  summarily suspend, without a hearing, the permit of a permittee who
  46-14  fails to file a report or return or to make a tax payment required
  46-15  by this subchapter.  The Administrative Procedure and Texas
  46-16  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
  46-17  not apply to the commission in the enforcement and administration
  46-18  of this section.
  46-19        (b)  A suspension under this section takes effect on the
  46-20  third day after the date the notice of suspension is given.  The
  46-21  notice shall be given to the permittee or the permittee's agent or
  46-22  employee by registered or certified mail if not given in person.
  46-23        (c)  The commission shall terminate a suspension made under
  46-24  this section when the permittee files all required returns and
  46-25  makes all required tax payments that are due.
  46-26        SECTION 53.  Section 202.06(b), Alcoholic Beverage Code, is
  46-27  amended to read as follows:
   47-1        (b)  Permittees, except daily temporary mixed beverage
   47-2  permittees, shall keep a copy of this record, as well as all other
   47-3  records of receipts and disbursements by the permittee, on file on
   47-4  the premises for a period of four <two> years.  The record is open
   47-5  to inspection by any agent of the commission or by any peace
   47-6  officer at any time.
   47-7        SECTION 54.  Section 202.09, Alcoholic Beverage Code, is
   47-8  amended by amending Subsections (a) and (c) and by adding
   47-9  Subsection (d) to read as follows:
  47-10        (a)  The commission may <shall> examine the tax account of
  47-11  each permittee and collect any additional taxes due as established
  47-12  through any information or records in the possession of, or
  47-13  available to, the commission or that may come into the commission's
  47-14  possession.
  47-15        (c)  When additional taxes are established as due based on an
  47-16  examination by the commission, a penalty equal to 10 percent of the
  47-17  additional taxes due shall be collected with the additional taxes
  47-18  due.  In addition to the penalty, interest on the amount of the
  47-19  additional taxes accrues at the rate of 12 percent a year for the
  47-20  period beginning on the date the additional taxes become due and
  47-21  ending on the date the additional taxes are paid.
  47-22        (d)  The commission by rule may adopt procedures and
  47-23  requirements relating to the audit or examination of tax accounts.
  47-24        SECTION 55.  Chapter 203, Alcoholic Beverage Code, is amended
  47-25  by adding Section 203.13 to read as follows:
  47-26        Sec. 203.13.  SUMMARY SUSPENSION.  (a)  The commission may
  47-27  summarily suspend, without a hearing, the permit of a permittee who
   48-1  fails to file a report or return or to make a tax payment required
   48-2  by this subchapter.  The Administrative Procedure and Texas
   48-3  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
   48-4  not apply to the commission in the enforcement and administration
   48-5  of this section.
   48-6        (b)  A suspension under this section takes effect on the
   48-7  third day after the date the notice of suspension is given.  The
   48-8  notice shall be given to the permittee or the permittee's agent or
   48-9  employee by registered or certified mail if not given in person.
  48-10        (c)  The commission shall terminate a suspension made under
  48-11  this section when the permittee files all required returns and
  48-12  makes all required tax payments that are due.
  48-13        SECTION 56.  Sections 204.01(g), (h), and (i), Alcoholic
  48-14  Beverage Code, are amended to read as follows:
  48-15        (g)  An exemption under Subsection (f) of this section
  48-16  terminates and the permittee or licensee must furnish a bond or tax
  48-17  security if the permittee or licensee fails to pay a tax or fee
  48-18  imposed by this code on or before the due date.
  48-19        (h)  A permittee or licensee required to furnish a bond or
  48-20  tax security under Subsection (g) of this section is again entitled
  48-21  to exemption from the surety requirement if the permittee or
  48-22  licensee:
  48-23              (1)  pays all delinquent taxes and fees and any
  48-24  applicable penalties; and
  48-25              (2)  pays all taxes and fees required by this code on
  48-26  or before the due date for 18 consecutive months after the month in
  48-27  which the delinquent taxes and fees and the penalties are paid.
   49-1        (i)  A permittee or licensee who qualifies for an exemption
   49-2  under Subsection (f) of this section is also exempt from the
   49-3  bonding requirement for any other mixed beverage permit,
   49-4  wholesaler's permit, class B wholesaler's permit, or distributor's
   49-5  license currently held by or subsequently issued to the same
   49-6  permittee or licensee for use at licensed premises different from
   49-7  and additional to those covered by the permit or license under
   49-8  which the permittee or licensee qualified for exemption.  However,
   49-9  if a permittee or licensee fails to pay a tax or fee imposed by
  49-10  this code on or before the due date and the permittee or licensee
  49-11  holds multiple permits or licenses, the requirement for a bond or
  49-12  tax security shall be imposed or reimposed under Subsection (g) of
  49-13  this section only on the permit or license covering the licensed
  49-14  premises for which the tax or fee and any applicable penalty were
  49-15  not timely paid.
  49-16        SECTION 57.  Section 204.03(d), Alcoholic Beverage Code, is
  49-17  amended to read as follows:
  49-18        (d)  Bonds, letters of credit, or certificates of deposit to
  49-19  insure the payment of the tax on distilled spirits imposed by
  49-20  Section 201.03 of this code, the tax on vinous liquor imposed by
  49-21  Section 201.04 of this code, the tax on ale and malt liquor imposed
  49-22  by Section 201.42 of this code, or the tax on beer imposed by
  49-23  Section 203.01 of this code, shall be set at an amount that will
  49-24  protect the state against the anticipated tax liability of the
  49-25  principal for any six-week period.
  49-26        SECTION 58.  Chapter 204, Alcoholic Beverage Code, is amended
  49-27  by adding Section 204.06 to read as follows:
   50-1        Sec. 204.06.  COMPREHENSIVE WINERY BOND.  A person who holds
   50-2  both a winery permit and a wine bottler's permit may execute a
   50-3  single bond in an amount determined by the commission instead of
   50-4  multiple bonds to secure the performance of different activities by
   50-5  the holder.
   50-6        SECTION 59.  Sections 206.01(a) and (b), Alcoholic Beverage
   50-7  Code, are amended to read as follows:
   50-8        (a)  A permittee who distills, rectifies, manufactures, or
   50-9  receives any liquor shall make and keep a record of each day's
  50-10  production or receipt of liquor and the amount of tax stamps
  50-11  purchased by the permittee.  A permittee other than a retailer
  50-12  shall make and keep a record of each sale of liquor and to whom the
  50-13  sale is made.  Each transaction shall be entered on the day it
  50-14  occurs.  Permittees shall make and keep any other records required
  50-15  by the commission.  All required records shall be kept available
  50-16  for inspection by the commission or its authorized representatives
  50-17  for at least four <two> years.
  50-18        (b)  No person may fail or refuse to make and retain for at
  50-19  least four <two> years any record required by this section.
  50-20        SECTION 60.  Sections 13(g) and (n), Bingo Enabling Act
  50-21  (Article 179d, Vernon's Texas Civil Statutes), are amended to read
  50-22  as follows:
  50-23        (g)  The commission shall issue a license permitting a
  50-24  commercial lessor applicant to lease premises for the conduct of
  50-25  bingo to an authorized organization or organizations specified in
  50-26  the application during the period specified in the application or
  50-27  such shorter period as the commission determines, but not to exceed
   51-1  one year, on payment of a license fee in accordance with Subsection
   51-2  (d)(2) of this section if the commission determines that:
   51-3              (1)  the applicant seeking to lease a hall or premises
   51-4  for the conduct of bingo to an authorized organization is qualified
   51-5  to be licensed under this Act;
   51-6              (2)  the applicant satisfies the requirements for an
   51-7  authorized commercial lessor as prescribed by this section;
   51-8              (3)  the rent to be charged is fair and reasonable, as
   51-9  determined by the rules of the commission, and will be charged and
  51-10  collected in compliance with Section 11a of this Act;
  51-11              (4)  there is no diversion of the funds of the proposed
  51-12  lessee from the lawful purposes as prescribed by this Act;
  51-13              (5)  the person whose signature or name appears in the
  51-14  application is in all respects the real party in interest and is
  51-15  not an undisclosed agent or trustee for the real party in interest;
  51-16  and
  51-17              (6)  the leasing of a hall or premises for the conduct
  51-18  of bingo is to be in accordance with this Act.
  51-19        (n)  A commercial license to lease bingo premises to a
  51-20  licensed authorized organization may be issued only to:
  51-21              (1)  an authorized organization licensed to conduct
  51-22  bingo that owns or leases premises on which bingo is or will be
  51-23  conducted or an association of authorized organizations licensed to
  51-24  conduct bingo that jointly own premises on which bingo is or will
  51-25  be conducted and that the organization or association leases or
  51-26  offers for lease to one or more other authorized organizations to
  51-27  conduct bingo;
   52-1              (2)  a person who leases premises to a single licensed
   52-2  authorized organization that subleases or will sublease the
   52-3  premises to one or more other licensed authorized organizations to
   52-4  conduct bingo on the premises; or
   52-5              (3)  a person who leases premises for the total control
   52-6  and exclusive use of only one licensed organization as that
   52-7  organization's primary business office.
   52-8        SECTION 61.  The Bingo Enabling Act (Article 179d, Vernon's
   52-9  Texas Civil Statutes) is amended by adding Section 16A to read as
  52-10  follows:
  52-11        Sec. 16A.  ADMINISTRATIVE PENALTIES.  (a)  The commission may
  52-12  assess an administrative penalty against the holder of a commercial
  52-13  lessor's license under this Act who violates a provision of this
  52-14  Act or a rule or order adopted by the commission under this Act as
  52-15  provided by this section.
  52-16        (b)  The penalty for each violation may be in an amount not
  52-17  to exceed $5,000.  Each day a violation continues or occurs may be
  52-18  considered a separate violation for purposes of penalty assessment.
  52-19        (c)  In determining the amount of the penalty, the
  52-20  administrator of the Texas Alcoholic Beverage Commission shall
  52-21  consider:
  52-22              (1)  the seriousness of the violation, including the
  52-23  nature, circumstances, extent, and gravity of the prohibited acts
  52-24  and the hazard or potential hazard posed to the health or safety of
  52-25  the public;
  52-26              (2)  the economic damage to property or the environment
  52-27  caused by the violation;
   53-1              (3)  the history of previous violations;
   53-2              (4)  the amount necessary to deter future violations;
   53-3              (5)  efforts to correct the violation; and
   53-4              (6)  any other matter that justice may require.
   53-5        (d)  If, after investigation of a possible violation and the
   53-6  facts surrounding that possible violation, the administrator
   53-7  determines that a violation has occurred, the administrator may
   53-8  issue a violation report stating the facts on which the conclusion
   53-9  that a violation occurred is based, recommending that an